Fixer, the chart and the mood around here are reminding me of two years ago. Everybody either negative or damning wsp with feeble praise and not doing enough buyin' to keep up with the sellin' ... it went too far that time - what did it get to, a market cap of fifteen millions, .43 times ~32mil out .... she's been close to two hundred millions since ... you know, my first trade on wsp was a buy at 1.61 or 1.63, very few days later i sold most of them for 1.93 and 1.88 ... luck more than skill, but i kinda fell in love a little right there.
"She might hit $2.18." - Wooo ... that's lower than I would have picked before Monday's action, but you've been right before ... there should be significant support come in around 2.50 though, it's roughly half the late-May high and has been a s/r point four times in the last nine months. Stands a good chance of bouncing off that again, however temporarily, imho.
This thing about underground mining being limited in tonnage/day - well yes that's true, but nothing prevents an outfit from having two or three or seventeen mining operations going feeding a single mill, save space and orebody shape considerations. And underground will not require quite the permitting that Diavik's dike in their lake does ... though in this country that doesn't necessarily save you much cash or years of your life either. But at least you can save the startup earthmoving costs and apply more of your engineering dollar to the mining.
Of course it will be more expensive per tonne overall than most open-pits, but in that many tonnes of 190US/tonne rock there's room for a good buck to be made. At some point in this slide, if it continues, and yesterday sure made it look like it will, there's going to be a fine opportunity here for a bounce on the long side, eh.
I don't see any discussion of dsp ... it's been following wsp in percentage terms more or less ... wouldn't mind catching more of it around its opening price, where it looks like it's headed. Should be a financing coming up there, as on wsp. |
